ERBIL, Kurdistan Region – Iraq’s trade ministry affirmed on Sunday that commercial ties with neighboring Iran remain strong and that food prices in local markets have not seen any significant surge, despite ongoing regional escalation.
Mohammad Hanoun, spokesperson for the Iraqi Trade Ministry, told Rudaw that “the process of commercial and economic exchange with Iran has exceeded $12 billion,” with the majority of this trade occurring between the private sectors of the two countries.
He further clarified that "the border crossings between the two countries continue to operate without interruption, and we have not received any reports of any border crossing being cut off."
There are at least nine official border crossings between Iran and Iraq, with four of the most important ones - Parvezkhan, Haji Omaran, Bashmakh, and Shushme - located in the Kurdistan Region.
Hanoun also highlighted Baghdad's long-term strategy for food security, stating, “The Iraqi government has been preparing a broad plan for two years to ensure large quantities of foodstuffs and essential goods for Iraqi citizens,” dismissing concerns about Iraq facing food scarcity due to the regional tensions.
He added that the Iraqi government is upping efforts to monitor local markets including any potential product price increases.” The spokesperson explained that the trade ministry is “monitoring and tracking any price increase and has measures ready to be adopted in the event of a sharp rise in food prices.
“We have not observed any sharp or significant increase in prices, especially the prices of food items needed by citizens,” he stressed. Moreover, Iraq has no intention of impeding trade flows from Iran or shutting down border crossings, as such actions could contribute to spikes in product prices.
The regional tensions escalated significantly after Israel launched strikes on Iran’s nuclear facilities on June 13, killing several senior military commanders and prompting retaliatory attacks from Tehran. In response, Iran launched multiple waves of missile and drone attacks against Israeli targets.
In a major development on Sunday, the United States carried out airstrikes targeting Iran’s three primary nuclear sites: Fordow, Natanz, and Isfahan. Iranian Foreign Minister Abbas Araghchi remarked on X that Tehran “reserves all options to defend itself” after what he called “outrageous” strikes that “will have everlasting consequences.”
In neighboring Iraq, further escalation could have grave consequences, especially if Tehran opts to shut down the Strait of Hormuz in response to the US strikes - endorsed by the Iranian parliament on Sunday.
The Strait is a crucial chokepoint for 90 percent of Iraq's oil exports, which constitute the vast majority of the state’s revenue. Beyond oil, increased regional instability would raise shipping costs and insurance premiums and disrupt vital supply chains for Iraq's significant imports from Iran and other nations.
